ACCOUNTING HOMEWORK
Mink Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $60 and Mink would sell it for $130. The cost to assemble the product is estimated at $42 per unit and the company believes the market would support a price of $170 on the assembled unit. What decision should Mink make? AND WHY
[removed] | Sell before assembly, the company will be better off by $2 per unit. |
[removed] | Sell before assembly, the company will be better off by $40 per unit. |
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